Application
This unit describes the skills and knowledge required to implement and supervise the insurance tender process with insurance bodies. It encompasses reviewing insurer arrangements, supervising and implementing the tender process and monitoring of ongoing service by the insurer.
It applies to individuals who use analytical skills and systematic approaches to liaise and negotiate tender arrangements with insurance bodies.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Review insurance arrangements | 1.1 Review insurance arrangements as per trust deed, and organisational policy and procedures 1.2 Prepare criteria for insurer selection and confirm with relevant stakeholders 1.3 Implement selection process for choosing insurer, and demonstrate that this process is in best interests of members 1.4 Facilitate tendering process when necessary 1.5 Pass on tendering information to appropriate staff where required |
2. Manage tender process | 2.1 Establish agreement on selection criteria 2.2 Provide all relevant information to insurer as requested 2.3 Obtain from insurer all relevant information relating to fund 2.4 Demonstrate unbiased assessment of tenders on basis of relevant considerations 2.5 Negotiate policy terms and conditions with insurers 2.6 Undertake due diligence review of selected insurer 2.7 Review benefit design in line with membership profile |
3. Implement group life insurance arrangement | 3.1 Select appropriate insurer and document decision according to trust deed organisational procedures 3.2 Review policy document against organisational and trust deed requirements, highlighting any possible concerns fund may have with insurer before entering into formal agreement 3.3 Provide policy document and agreement to legal adviser for review before entering into legally binding agreement 3.4 Implement trustee decision on which insurer is responsible for claims if new insurer is appointed 3.5 Facilitate signing of agreement 3.6 Document and record accurately all information on organisational system 3.7 Communicate any benefit design changes with members and appropriate staff |
4. Report on insurance strategy | 4.1 Review insurance strategy to ensure it is compliant with relevant superannuation legislation and regulations 4.2 Monitor insurance arrangements and report to senior management against agreed service standards |
Evidence of Performance
Evidence of the ability to:
supervise the tender process, including preparing selection criteria, collecting appropriate data and investigating proposed insurer
negotiate, prepare or verify a policy document and agreement in a timely manner with different stakeholders
assess tenders against set selection criteria including the fund’s trust deed
negotiate suitable outcomes with insurers.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
identify and describe the key features of relevant legislation, regulatory guidelines and industry sector codes of practice relevant to tender processes
describe the selection process for choosing an insurer appropriate to membership of the superannuation fund
outline Australian Prudential Regulation Authority (APRA) requirements relating to the engagement of an insurer
explain the importance of wording of insurance policies in keeping with the organisation or industry sector
outline organisational policy and procedures relating to tender processes
outline the organisational information technology systems used in assessing insurance tender responses
outline the terms and conditions of insurance arrangements
describe common principles and methods of filing documentation
describe insurance terminology
identify and apply relevant legislation, regulatory guidelines and industry sector compliance requirements as they apply to:
insurance contracts
APRA Prudential Framework
group insurance arrangements
consumer protection
financial services
corporations.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the superannuation field of work and includes access to:
organisational records
organisational policy, procedures, legislation and regulations as they relate to contracts of insurance
a range of common technology and software.
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 1.2, 2.1-2.7, 3.1, 3.6, 3.7, 4.1, 4.2 | Collates and consolidates complex information and data from a range of sources Thoroughly analyses information and data against defined criteria, conditions and requirements |
Writing | 1.2, 1.5, 2.2, 2.5, 3.1, 3.2, 3.6, 3.7, 4.2 | Accurately and logically records and manages information using correct organisational formats and systems Prepares documentation using clear language, concepts and terminology appropriate for the audience and purpose |
Oral Communication | 1.2, 1.4, 1.5, 2.1-2.3, 2.5, 3.5, 3.7, 4.2 | Uses collaborative techniques including active listening and questioning to negotiate outcomes, and to convey and clarify information in verbal exchanges |
Numeracy | 1.1, 2.1, 2.2, 4,2 | Applies mathematical problem-solving techniques to interpret numeric and financial data |
Navigate the world of work | 1.1, 1.3, 2.1, 2.2, 2.4-2.6, 3.1-3.3, 4.1-4.2 | Takes full responsibility for following policies, procedures and legislative requirements Identifies and resolves key business issues, processes and practices that may have legal implications |
Interact with others | 1.4, 1.5, 2.2, 2.5, 2.6, 3.3, 3.7, 4.2 | Collaborates with others and provides information as required to facilitate and achieve outcomes |
Get the work done | 1.2-1.4, 2.1-2.7, 3.1-3.6, 4.1-4.2 | Accepts responsibility for planning and sequencing complex tasks Accepts responsibility for addressing less predictable problems, applying problem-solving processes to determine a solution |
Sectors
Superannuation